Optimising All Inclusive Expenditure in Paphos: recommendations for the pilot stage of potential solutions.

Transcription

1 Optimising All Inclusive Expenditure in Paphos: recommendations for the pilot stage of potential solutions.

2 Table of Contents Executive summary... 2 Study background... 2 Methods overview... 2 Key findings... 2 Introduction... 3 Background of the research... 4 Literature review... 4 Research methods... 5 Research sample... 6 Discussion of findings... 6 Past initiatives... 6 Significant resort development issues... 9 Paphos identity... 9 Greek and Cypriot confusion Consumer perception of identity Consumers overall perceptions of Paphos Collaboration Strategic review implementation suggestions Researched tactical solutions The festival Ambassador programme Quality labels Meal exchange and discount vouchers Meze trail Wi- Fi Provision of local information Feasibility of recommended solutions Education Festival Kiosk/information boards Technology Conclusions Bibliography Appendices Appendix A: industry and media reports review Appendix B: Timeframes, costs and table of activities for each suggested solution Appendix C: Table of contacts willing to participate in any of the pilot projects Appendix D: Quote for touch screen technology from possible supplier

3 Executive summary Study background The tourist destination of Paphos has experienced a strong growth of the all- inclusive (AI) hotel product. Previous studies suggest a lower customer spend in Paphos when compared to other Cypriot destinations, indicating an opportunity for development. In partnership with the Cyprus Tourism Organisation (CTO) and Cyprus Sustainable Tourism Initiative (CSTI), the Travel Foundation commissioned a team of researchers from the University of Brighton to conduct this research into identified possible initiatives to increase customer spend in resorts, increase customer satisfaction and encourage repeat visits to the destination. The aim of the research project was to explore stakeholder acceptance of solutions that could motivate AI customers to spend more time and money outside their hotel and thus better support local businesses and the community. It was identified that the underlying factors that restrict Paphos from becoming a more memorable destination also had to be explored to understand why the destination is not achieving its full potential. The study delivers suggestions for three tactical and one strategic solution that the partnership could focus on in the future. The report also includes feasibility studies, projected costs and stakeholder contacts for piloting the solutions that were identified as possible methods of increasing customer spend. Methods overview The research team identified a number of key stakeholders and engaged in a series of observations; unstructured, semi structured and structured interviews and focus groups with ten key stakeholder groups. The data collection took place in September Findings in this report emerged from 160 structured interviews with AI customers, 58 interviews and 5 focus groups with service providers. Key findings The research team identified a number of key strategic issues that will need to be addressed by local stakeholders. Paphos, in the minds of local stakeholders, appears less developed and less organised than other Cypriot resorts. The following findings suggest that before tactical solutions are piloted, the partnership will need to strongly consider that Paphos is in need of strategic repositioning of its core tourist offering. As such a strategic review will be needed before the partnership can consider any of the possible solutions this report suggests. The outcome of the strategic review will influence the approach and content of the proposed solutions so that they may have the best chance of success. Research findings suggest that the perceived negative impacts of the introduction of AI in Paphos appear heightened due to the absence of collaboration amongst key stakeholders. Paphos hospitality and a wonderful climate need to be leveraged to enable Paphos to protect itself from increased competition and limit substitution with other resorts offering AI. Identity, brand, visual identity and local political issues, need to be considered in any future development strategies. Communication and collaboration amongst business sectors requires mediation by a neutral 2

4 organisation. Not all tour operators (TOs) are perceived to act in an ethical and sustainable manner, damaging stakeholder trust. Local authorities must be part of the solution and develop a clear strategy regarding who is allowed to hold licences at strategic places that affect the visual identity of the resort. It is not realistic for the CTO to be expected to act as both the enforcer and a rewarding body. CTO must be seen to enforce rules in a consistent and effective manner. Once a strategic review takes place and issues of identity, brand, and collaboration are addressed, the partnership has a choice to pilot one solution that has the potential to both test the ability for collaboration and begin exploring how to best address notions of identity and brand. We suggest experiential education as the key to addressing the issue of lack of pride and absence of destination identity. The Ambassador Programme could be considered in conjunction with the education solution. Secondary research and workshops with experts enabled the researchers to focus on seven identified possible tactical solutions (education was not one of them). Research findings specific to each of those solutions suggest that only three have the potential to yield positive results for encouraging guests to leave their AI hotels. More specifically: Festivals are a great way to quickly leverage existing strengths and introduce visitors to a more authentic Paphos experience using identified quality local food and produce. This will increase spend in addition to helping develop an identity. All stakeholders value quality labels but it is crucial to chose the right developer and moderator. Qualitative evidence suggests that the CTO should retain its recently launched hotel quality label but a neutral organisation should develop a sustainability label for all other service delivery operators. The Meze trail and meal exchange solutions may be agreeable to customers but are unlikely to work in Paphos as immediate solutions because of conflicts of interest between stakeholder. All stakeholders welcome hi- tech solutions that provide up- to- date, relevant, resort- specific information about local services and recommendations. More information through well- produced media (leaflets, images and maps) should focus around a clear identity for Paphos. All stakeholders welcome promoting local produce, attractions and businesses that offer a good quality experience. Where, by whom and how the distribution process is managed is not unanimously agreed by service providers. This report provides feasibilities for three tactical solutions to encourage greater spend in the local area from AI guests. It also includes one solution (education with a possible combination of the Ambassador Programme) that is more strategic in nature, and through piloting will help inform the strategic needs of the destination. The tactical solution piloting and evaluating better information boards at hotels could begin at any point. However the festival and technology solutions are more influenced by the strategic issues identified. Although the partnership could very well begin piloting any of the solutions suggested in this report, it must consider that piloting any of the solutions without addressing the strategic issues is likely to prove problematic. Introduction The research officially commenced in September Following a meeting with the clients and desktop research the project focused on a small number of solutions that showed promise as potential solutions to encourage further AI consumer expenditure on trip that could be implemented in Paphos. The research team then travelled to Paphos in mid- September and after a full week of intensive research began analysing the findings in order to make recommendations. 3

5 Background of the research The tourism destination of Paphos, Cyprus appears relatively underdeveloped when compared to other Cypriot resorts and is in need of strategic repositioning of its core tourist product. A range of factors influence the local economic contribution of the hotel sector. These include ownership and management structures, procurement and staffing and customer expenditure. A hotel s procurement of local goods and services (including staff) can make a significant contribution to the local economy. The objective of this research was optimising tourist expenditure outside the hotel. This is important since such expenditure encourages a diversified and enterprising tourism economy, which enables the destination to differentiate itself from other competing destinations, encourages repeat visits, and provides an attractive place to live and work. In partnership with the CTO and CSTI, the Travel Foundation commissioned a team of researchers from the University of Brighton to develop the recommendations from past research and explore perceptions of implementation of new initiatives that will stimulate greater tourist spend within the local economy; increasing customer satisfaction with the holiday experience, encouraging repeat visits and helping to ensure the long term sustainability of Paphos as a holiday destination. Literature review The approach to secondary research needed to consider the lack of any previous analysis of solutions to encourage further AI tourist expenditure on trip and as such this section is developed to create greater understanding of the issues surrounding the context for the project from academic literature and industry and media reports. Whilst by no means a new concept, the AI holiday is seen to have had significant recent growth in the mass tourism segment over the past five years (Alegre and Pou, 2008). It is also relevant to note that more recently it is the UK premium AI sector (4/5* tour operator rated properties) that has seen the largest growth in terms of the UK outbound market (GfK Asent, 2012). Growth in demand has been driven by consumer demand for value and convenience. The AI holiday is seeing a change to the role of the destination in the holiday selection process and indeed the destination experience on trip. The impact of AIs on the destination stakeholders is highlighted as being significant and in particular to the tourism entrepreneur who has traditionally served the package tourist with hospitality, retail and local transportation (Henry, 1989). A BBC news report found restaurateurs in Majorca to be at the brink of collapse due to the increased dominance of AI. In response, local businesses state the need for a restriction on the number of AI hotels in destinations for a win/win scenario to be achieved (Datar, 2011). Indeed expenditure surveys such as those used by Alegre and Pou (2008) and Anderson (2012) and carried out previously by Travel Foundation, clearly indicate that the AI customer spends less in the destination than other types of tourist and that distribution of tourism expenditure outside of the hotel is limited. Indeed the AI consumer is generally less likely to venture away from the hotel where they have already paid for the provision food/drinks/entertainment (Anderson, 2010). Previous research by the Travel Foundation in 2013 in Cyprus identified that the quality of the experience outside the AI environment may have an impact on the AI tourist expenditure on trip. This confirms research by Alegre and Juaneda (2006) that identified the quality of the destination as a determinant of in- resort tourist 4

6 expenditure (Anderson, 2010). The AI tourist is buying into a total tourist experience, which is set at a standard usually based on tour operator or hotel ratings. In the case of the premium AI sector it is the quality of the AI product that has been responsible for growth in the sector (GfK Ascent, 2012). To encourage AI tourist expenditure outside of this environment the offerings in hospitality and retail establishments must therefore be matched with that of the hotels or indeed exceeded. Additionally Gronau (2009) discusses the use of food and drink outside the hotel to assist in differentiating against other destinations where tourists are encouraged to try something new and authentic. This approach may in turn contribute to holiday recollection, word of mouth marketing and repeat visits. To further consider the issues that need to be addressed in relation to AI tourist expenditure, a stakeholder approach has been considered (Tourism Stakeholder Map, Freeman 1984). Development of an AI tourism product is seen to create conflict within the stakeholder groups of an established destination such as Paphos where some stakeholders 6-10 (see previous figure) are seen to benefit from such changes whilst stakeholders 1-5 no longer see the same levels of benefit previous experienced from more traditional half- board package tourism. The balance of power of influence on the tourist experience is also seen to sway in the favour of stakeholders In order to address these conflicts and indeed stimulating AI tourist expenditure outside of the AI package and hotel environment clearly a co- ordinated approach must be recommended and to redress the balance in the tourism destination those stakeholders with the greatest influence on the consumer must take action. Jamal and Getz (1995) discussed a collaboration process for Community Based Tourism Planning highlighting the importance of: - Facilitating conditions and actions/steps - Stimulating positive beliefs about outcomes - Sharing values - Rebalancing power By adopting this process in seeking initiatives for stimulating greater expenditure from AI tourists, greater benefits for Paphos as a destination will be achieved. Academic, industry and media reports suggest that to date there is no clear literature that investigates the benefit and implementation of such initiatives. Discussion of industry and media reports Analysis of industry reports identify the key themes for discussion as AI sector growth and reasons for that growth in terms of consumer budgeting and booking security, versus the consequences of this growth on the destination. Millington et al (2001) have highlighted some AI sector initiatives to add variety to the consumer experience which in turn encourage on trip spend and the IBAS initiative in The Gambia provides evidence backing business involvement for solutions for local craftspeople. TUI have begun to address some of the issues of AI sector development although there is limited evidence for solutions to encourage greater AI tourist expenditure on trip. It is recognised through this analysis that any initiatives piloted as a result of this research will significantly contribute to solutions for encouraging greater AI expenditure on trip. Furthermore a review of industry reports and media can be seen on Appendix A. Research methods Prior to visiting Paphos the research team utilised findings from secondary research to identify solutions that best work in similar destinations and for similar tourist product. The results proved to be less helpful as research in AI is limited both in terms of academic literature and in terms of industry reports. Working in partnership with the Travel Foundation project management and key expert stakeholders the team engaged in snowballing technique to limit the number of solutions. For example it became clear that the key geographic location on which the team ought to focus the research was Kato Paphos and a primary radius that can easily be reached on foot, followed by a secondary radius that can easily be reached by scooter. The solutions identified were a festival or event, quality labeling, meal exchange and discount vouchers, meze trail, access to Wi- Fi and Ask me I m a local. 5

7 The research team stayed in an AI four- star rated hotel for the duration of the data gathering. During this time research conducted included observations, unstructured, semi- structured and structured interviews with various stakeholders. A reflexive approach to data gathering and analysis was adopted. In order to enhance the quality of the data from local associations and groups of peers, and as a consequence of limited time in the field, focus groups were included the research. This method is rarely utilised in ethnographic research but the team s technique of focus group interviewing draws upon Gamson's (1992) "peer group conversations" and Press and Cole's (1999) "ethnographic focus groups" both of which modify traditional focus group methodology. As such focus groups tended to be smaller than those of traditional market research, the participants were not strangers to each other and the setting of the research in a friendly environment enhanced the naturalistic feel of the study. This approach provided both rich are relevant research data. Research sample During September 2013, 160 structured interviews with AI customers, 35 semi- structured interviews with service providers, 23 unstructured interviews with service providers and non- AI customers, and 5 focus groups were conducted. The key stakeholder groups participating in the investigation were: tour operators (TO), TO representatives, hoteliers, customers, local restaurants, local retail shops, visitor attractions, local business associations, CTO and CSTI, other service providers (i.e. excursions and taxi drivers). Discussion of findings The findings are divided into three sections. The first part reports on initiatives that had been tried in other destinations that became apparent through literature and evidence (that our primary research revealed) of initiatives/solutions that had been tried in Cyprus. The second part shows evidence of the problematic nature of the Paphos product and the key themes that became apparent through the qualitative parts of the research. To begin addressing such issues a potential solution (education) emerged that, although it was not one of the primary solutions of the research, it would be detrimental to Paphos tourism product if it was ignored. The third part focuses on the tactical solutions explored and both qualitative evidence and frequencies from the quantitative data collected is provided. The three tactical solutions are recommended because the findings specific to the solution were positive across all stakeholder groups. Past initiatives Previous and existing initiatives for increased AI tourist expenditure in similar destinations and the researched destination include:- Dine around - Dine around is used in some key all- inclusive destination areas such as El Gouna, Egypt, and some private initiatives are in place which allow consumers on other board bases to experience alternative dining venues, such as however there is complexity to the process of reassigning the pricing to the restaurant environment. In the example of El Gouna the restaurants and hotels that operate in the scheme are in one resort development: that is presumed to simplify the programme, see DA.pdf A meal voucher system is operated at the Aliathon (a First Choice property). This however is used for Mexican and Greek restaurants where the owners of the resort are involved in the property management and as such this is deemed easy to manage in terms of charges/pricing. The First Choice website for the same accommodation actively promotes a few Paphos restaurants and retail areas. It is 6

8 not clear how these are chosen and a co- ordinated approach to marketing these establishments in resort was not evident. There were no consumer ratings or reviews evident for these establishments. Research: focus groups/consumer research/observation Merchandising in retail outlets (in and out of hotel) In sample retail outlets, observation revealed that merchandising of local produce did exist although visibility of locally produced souvenirs and goods was generally very poorly considered and co- ordinated and, where available, often hidden behind "international tourist merchandise". Other popular tourist destinations have successfully developed a mechanism for prominence of local produce in tourist retail outlets in hotels and tourist areas, often supporting local artists and craftspeople that in turn generates greater local economic impact from tourism. A clear identity of local products such as those used by Ibiza with the tagline Thinking Ibiza gives a clear point for recollection and assists the tourist in their purchasing choices. Research: consumer research / observation Hotel market stalls Market stalls installed in hotel lobbies for evening entertainment offer an opportunity to promote Cypriot products, however research showed that these tended to offer generic products to appeal to the international market such as handbags and costume jewellery. This could offer optimum exposure to local crafts and products and could contribute to the authenticity of the AI tourist experience. Whilst the concept of a regular local product craft market bought into the hotel environment has already been implemented through a previous Travel Foundation project in Crete, it is certainly considered even more relevant in the AI environment where there is less expenditure outside of the hotel. Research: customer research / observation Destination labels Destination identity is seen as key to tourist selection, differentiation and recollection. Logos and taglines are well used in destination marketing and an example where the trademark concept has been well developed is the key destination of "St. Moritz - TOP OF THE WORLD" and the name is felt to convey security, quality, consistency in service, trust, reliability, tradition, expertise and authenticity. Secondary research indicates that consumers do not place an emphasis on specific destination features when selecting AI tourist destinations and it is therefore believed that a clear destination identity will contribute to destination selection criteria and recollection that, in turn, may contribute to the desire to explore the cultural identity and unique factors beyond the AI environment. Research incorporated the exploration of the destination identity in Paphos. A clear destination identity is not evident and the development of a destination label in Paphos could be used in conjunction with representation of the quality of establishments and a level of expected service and authenticity associated, perhaps reflective of the completion of an education programme. A label can be used more specifically to demonstrate service standards, such as Qualmark in New Zealand, which is tourism s official quality assurance organisation, providing a trusted guide to quality travel experiences. Qualmark makes it easy for travellers to select high quality places to stay, things to do, and ways to get around (Qualmark, 2013). Research: Observation/ consumer surveys /qualitative interviews with stakeholders Tours Tour operators offer a range of tours from Paphos to key tourist attractions although Local Paphos excursions are seen to be underrepresented in the tour provision. Much of the in resort tour promotion and Paphos AI tourist expenditure on excursions focuses on wider Cyprus tours, boat trips and water sports. Tours could be further developed with tour operators to incorporate a meal out in a Paphos restaurant, retail establishments and local Paphos sites. As identified in the analysis of literature and media, the AI tourists are reluctant to miss too much of their AI package and may respond well to shorter local excursions. 7

9 The Travel Foundation and CSTI have developed a range of tour routes available to the customer for self- drive excursions in Cyprus: 26% of tourists hire a car. The Real Cyprus initiative is seen to have potential to encourage tourists away from their resort areas and offers opportunity for local tourist spending. These maps, however, are not visible in the destination, either in hotels or from car hire companies and the scheme should be supported further by the provision of information in areas with high tourist footfall such as hotel lobbies. It is however noted that this initiative has not been developed to encourage tourist expenditure in the resort areas, rather in the hinterlands that may otherwise be left unexplored. The local bus initiative in Paphos serves the actual hotels and resort areas well and therefore could be seen as a mechanism for further encouraging visitors away from their hotels with perhaps a bus route map showing key attractions at each stop. Additionally the solution discussed by Millington et al (2001) mentions the initiative of IBAS in Gambia, which combines local bus service and key crafts markets and festivals. Research: observation / consumer research Food and drink and festivals In the past the CTO have introduced a pilot initiative, called the Vakhis programme, which was established in November 2004, with Higher Hotel Institute of Cyprus, which aimed to license traditional Cypriot taverns. To secure a certain level of authenticity, guidelines were established, including the authenticity of food, the utilisation of local ingredients, cleanliness, appearance of the building, decoration of the tavern and the use of local staff. The licensing process consists of an on- site visit by designated inspectors from the CTO. The licenses have to be renewed every two years and it is free of charge for the participants. The licensed enterprises are included in CTO- promotion activities such as the homepage, tourism brochures, or organised tourism (Gronau, 2009 p.1). The CTO state Look for the Vakhis sign to know that the establishment has been officially approved as the real thing. It is not clear if this programme progressed. In terms of tourist specific initiatives a minibus service was previously offered from the Aliathon hotel to a festival in the local village of Geroskipou but there was limited guest usage. Additionally, during the research in Cyprus in September 2013, a food, wine and craft festival took place in a local winery. The festival was rich with local produce and entertainment but it was only marketed in Greek and there was no information available in the resort areas. Research: qualitative interviews with tour operators in resort / observation Education Education for tourism stakeholders regarding the local area and product offering is considered critical to encouraging tourist expenditure outside of the AI hotel. It is understood from research in resort with local businesses that the CTO have provided such an education programme in the past. Research with in- resort tour operator groups also identified the opportunity for in- resort training for customer- facing tour operator staff to develop knowledge of the local product offering. Research: qualitative interviews with stakeholders and tour operators in resort. Technology Technology solutions are increasingly being used to complement more traditional sources of tourist information. Various new technologies were evident in Paphos. One hotel had a touch- screen information point although it was not clear how well utilised this was. A Cyprus app has recently been developed giving key information and it is being used by resort staff in some companies. A trial of use of tablet hardware by front line tour operator staff has also been in place with resort staff in Many restaurant / bar establishments offer Wi- Fi for their patrons. Research: observation / qualitative interviews with stakeholders 8

10 Provision of information Tourist information on the Paphos region and specifically on restaurants, retail establishments and local tours did not have optimum visibility in hotels and tourist areas. Research: observation Local Discounts Previously a pack of discount cards with various discounts for local establishments was offered for sale to visitors to Paphos. These did not sell well although research showed that tourists would utilise discounts to some extent. Research: qualitative interviews with tour operators Significant resort development issues Analysis of the semi- structured interviews and focus groups data revealed six interrelated themes that were emerging consistently from various stakeholders such as: tour operator management and resort reps; restaurateurs; hoteliers; hotel and restaurant employees; and other service providers such as local travel agents, taxi drivers, local excursions providers and employees of scooter rental or safaris. These themes reveal the depth of work that needs to be completed, both by internal and external stakeholders, for Paphos to change as a destination. The themes are: Paphos identity Greek and Cypriot confusion Brand Politics Collaboration Win - lose attitude and them versus us Paphos identity Identity needs redefining. A key finding that emerges from the interviews with both service providers and tour operator representatives is that of the loss of / limited identity. Service providers seem to realise the damage to their product because of that loss yet they seem uncertain as to how to break through the cycle of loss and frustration. Paphos used to have identity in romance in Aphrodite I have 30 years in this industry and we lost the identity not because of the all inclusive but because we stayed in the same place and not followed the market the tourist of the 80s is not the tourist of 2013 (restaurateur) Both product and strategy as well as brand relates to this sense of identity We lost our identity we have no strategy that is my personal belief, each unit tries alone to create opportunities, we have NO identity and this damages the product (hotelier) All reps agreed that a stronger location identity is needed we need for guests to experience Paphos or Cyprus.need something extra (tour rep). In a destination of hospitable people and wonderful produce, 90% of taxi drivers and hotel employees we interviewed could not identify what are the local products that should be taken home by the researchers. Most of those taxi drivers and hotel employees were people from the local villages. what to buy? ermmmmm Jewelery is good (taxi driver) This loss of identity seems enhanced in the minds of service providers by the fact that Cypriot people 9

11 do not wish to work in the industry and too many employed now are non- Cypriots. We do not have enough Cypriots that can enter the labour that affects the product. (hotelier) Yet our evidence suggests that even the Cypriots from the very villages that hold the key ingredients for identity and brand do not seem to be aware of the treasures that lie beneath their own feet. The answer has to be that structured and experiential education of front- facing service employees has lapsed. Greek and Cypriot confusion Greek and Cypriot confusion adds to the noise. Directly connected to the absence of a Paphos identity is the absence of a Cypriot identity or often the confusion of what is Greek to what is Cypriot. people pay Euro 2 for a GREEK salad (tour rep) like the Greek night (tour rep) We don't want to hear Abba we want Greek music (customer) This subtlety of local pride and the distinction of what is Cypriot versus Greek were more often found hidden in the villages and away from the key locations that are easily accessible to AI customers. Getting customer- facing employees to experience this Cypriot pride and produce first hand may be the identity transfusion that is needed to turn around Paphos as a quality destination. Consumer perception of identity Interviewees were asked to identify their top 3 motivations for selecting Paphos for their holiday. Results indicate that the main motivation was the weather. This places Paphos in the difficult position of being an easily replaceable destination and price sensitive customers will easily swap to another destination that offers a similar climate, accommodation provision and holiday pricing. Top motivations for selecting Paphos for this holiday (n=160). 20% 4% 6% 7% 26% 37% Uncertain Weather Other Hotel Word of Mouth Within the other motivations, weddings (3%) may be a factor worth considering as an opportunity for product development. Repeat visitors made up 42% of respondents. With a clear strategy focusing on the weddings market there is an opportunity to motivate even AI customers to consider Paphos as a great weddings destination. Value for money Consumers were asked to name their 3 most memorable experiences of Paphos. Interviewees on average detailed just fewer than 2 experiences and the researchers noted some difficulty answering this question by some respondents. 10

12 Top memorable experiences (n=160). Response % Warm weather 25 Friendly People 15 These responses could begin to provide some indications of Do not know, N/A 8 Food 7 Other 10 No response 35 Consumers overall perceptions of Paphos Despite the lack of memorable experiences, customers are satisfied with the product and an extremely high percentage would recommend Paphos to friends and relatives. Would you recommend Paphos as a holiday destination (n=160) Brand is key. From playing Abba music at 7a.m. in hotels to having the best Cypriot product hidden behind generic non- Cypriot- produced merchandise in retail outlets (inside and outside of the hotels), the brand is sacrificed on the altar of opportunism and lack of planning. There is a sense of unplanned tourism development and no stakeholder co- operation and as such any initial brand focus has been lost. Paphos has seemingly become one more destination of sea and sun with internationally styled accommodation which is easily substitutable by many other similar destinations. Paphos used to be the quality tourism of Cyprus but no more, we have lost our identity we need to decide what we want from tourism (travel agent) people may leave Cyprus with a bad experience (those booking) weddings often complain about the poor quality of the restaurants they book (tour operator) we are stupid, everyone tried to have easy profit, no one cares about the guests needs, everybody tried to steal from the guests, don t care for the next day (hotelier) do you know you are in Cyprus - it's a tough one there is not enough promotion, don't give enough to boost Paphos (tour rep) Paphos has a golden opportunity to leverage the resources that have been given to the city to develop a strong brand beyond 2017, yet those plans have not been communicated to the people that matter the most, the customer- facing service providers. The efforts to communicate that in 2017 Paphos is a European capital of culture need to be expedited and it is important that the local municipality works in synergy with local associations to achieve the best outcomes for a renewed identity and a solid Paphos brand. Politics do matter. Local politics and politics amongst key stakeholders is a common thread that appears with almost 80% of our service provider interviewees. 11

13 Implementation is the problem - the government doesn t help us much as it should (hotelier) The politics can change but we need laws and penalties from the uniform that staff wear, to the service and everything we need more control by the government (restaurateur) We need a holistic approach, we can t change things if politics don t change, we suffer and we need to redevelop our brand (restaurateur) With a country still in financial crisis and opportunities just around the corner the timing could never be better for stakeholder groups to put aside their differences and work synergistically. There is evidence to suggest that on average customers are spending 6.87per day less than they had originally budgeted. With CTO reporting tourist arrivals in the region of 2.4 million there is a real incentive for all stakeholders to recapture a loss of planned expenditure by tourists that can total millions of euros per year. Budget versus actual expenditure, comparison of means (in euro) N Minimum Maximum Mean Budget per day Actual per day Valid N 144 One may assume that there may be a difference between repeat visitors to Paphos and those that have visited for the first time. However our sample suggests that there is no significant difference on actual expenditure per day from visitors that have been to Paphos at least once before. Range of actual expenditure per day Interviewee number Repeat versus first time visitors Zero first time visitors 24 repeat 15 to 40 euro first time visitors 14 repeat 45 plus euro first time visitors 10 repeat Collaboration Although there is some progress towards collaboration by various stakeholders, the research team s observations suggest that the overall evidence of collaboration amongst stakeholders is limited. In order to reach the goal of achieving an identity, a moderating force that fosters collaboration for projects needs to intervene. Trust between those tour operators that wish to maintain ethical and sustainable products and local stakeholders will need to be restored. The CSTI seems to be well placed as an organisation that tries to harmonise all efforts or at least monitors and effectively communicates progress to all stakeholders. In Paphos today there is monopoly not because of hoteliers or restaurateurs but because of tour operators (restaurateur) Of course the tour operators have the monopoly, they come they drop the contract in front of you and they do not discuss the conditions with you, but beyond that their representatives have also monopolised the side economy of tourism, for example excursions or safaris or renting cars, they blackmail us in some way to achieve what they want (hotelier) 12

14 There is a programme for collaboration but the communication takes time... we plan to have an organised effort for example to train the taxi drivers and of course the hotel employees (association leader) Often good efforts fail without collaboration. Most of the solutions that the researchers investigated would never get off the ground or would fail because even individuals in the same sub- sectors seemed determined to not collaborate. Win - lose attitude & them versus ss Win lose attitude and they versus us are notions hidden in emotional rather than logical responses. Often the interviews would steer towards it s their fault or it s their problem very rarely did individuals accept the possibility that their actions contributed to the issues. All the costs are going up but the prices go down - how are we going to survive? (hotelier) everybody outside restaurant taverns, they are going are going to lose the game and the pie is only one its smaller and everybody wants a piece of this pie (hotelier) this game they play it alone the hoteliers (restaurateur to hotelier) (hotelier responds) of course they play it by themselves, did we want this? We had no choice (focus group) Although some stakeholder groups rarely see the possibilities for win - win situations, the spark exists. I think some tour operators have goodwill to help (hotelier) At this time of crisis we are more likely to collaborate than ever before (travel agent) Finally, it became apparent that local stakeholders perceive Paphos as less developed than other parts of Cyprus..in Ayia Napa they are so organised and do much better than us (restaurateur) Strategic review implementation suggestions The research focused on a number of agreed tactical solutions and their implementation with the intention of increasing AI expenditure outside of the hotel. During the project it became obvious that attempting to pilot solutions at this time would minimise their chances of success. It is therefore imperative that the partnership undertakes a strategic review. This review should include, but not be limited to, the key strategic issues identified in the previous section of this report. Without the strategic review it would be very unlikely that the strategic issues we identified will be resolved, resulting in minimal chances of success for the tactical solutions. Furthermore it is worth noting that the research team did not intend to research strategic issues as they were not a direct objective of the research project and more strategic issues may be unearthed during a strategic review. A number of approaches could be considered. For example Smith s (2004) triple R (regeneration, revitalization, reinvention) may be considered as the basic design of such a strategic review, as Paphos fits the destination profile that Smith considers in her research. 13

15 In order for the review to be successful it would need to be facilitated by a local (Cypriot) consultant with a tourism and hospitality background who is (preferably) not based in Paphos (i.e. with no direct business connections or any conflicts of interest with Paphos). Such a consultant profile should minimise risks to the project from past issues and micro politics in Paphos. To provide direction it is recommended that a steering group be formed which will receive reports from, and provide support to, the consultant(s). The steering group could consist of the Travel Foundation, CTO and CSTI and (possibly) the Paphos Regional Board of Tourism. The aim of the strategic review is to develop a clear strategy for the identity and brand of Paphos. The consultant can help facilitate steering group decisions in the following key areas: 1. Paphos identity and consumer perceptions of Paphos. 2. Greek and Cypriot confusion. 4. Facilitating collaboration amongst stakeholders. 5. The changing competitive environment. The steering group must ensure that the Paphos Regional Board of Tourism and representatives from the local hotel and local restaurant association, local taxi and local travel agent association are part of the process. The steering group will also need to agree the level of input of key suppliers such as tour operators, airlines and service providers. Other stakeholder groups that may be leading the organizing of Paphos will also need to be considered. We believe that it is imperative the local municipality is also heavily involved. Key strategic decisions and issues including visual identity will need their agreement and commitment. It would be near impossible to achieve significant positive change if the local municipality, who is responsible for providing licenses, is unsupportive in its approach to the development of Paphos and its brand. Researched tactical solutions The following tactical solutions were initially the primary objective of this research. Each of the solutions here is discussed based on the findings specific to that solution. Each stakeholder group was asked a number of questions relevant to the solution and it is from those answers that recommendations for the tactical solutions are made. The festival In consideration of Gronau s (2009) discussions, relating specifically to Cyprus, of how local culture is expressed in traditional food and beverages, and its role in destination differentiation and particularly how the promotion of local food and beverages can make the difference in today s competitive destination market (p1.), this concept is developed on the basis of celebrating Paphos products and creating a reason for AI customers to get out of their hotel. The possibility of running such festivals in hotels was also explored to try and capture those that would never leave the hotel but that appears more problematic than having monthly, bi weekly or weekly festival. Hoteliers - Seem to love the idea as a possible solution, I like this idea it s going to be an attraction as people want to see something new. They believed it would showcase Cyprus. They thought it would make the guest happy and some thought they could provide transport for guests to it (if local) (Anderson, 2010). However, it was felt not to be for everyone, especially those with children as young families will find excuses to leave the hotel. Customers seem in favour but it needs to be within walking distance, needs to combine retail, gastronomy and wine. They seem to prefer no entry cost, but are happy to pay to buy products once in the festival. A few commented on how they felt they should not have to pay if the festival is held in the 14

16 hotel. In terms of transport customers mostly used local bus services and as such the radius of the festival location could be extended a little further if serviced by bus route. I would pay to attend a food and wine tasting festival to taste local produce if it was held within walking distance of my hotel I would pay to attend a food and wine tasting festival to taste local produce if it was held IN my hotel The difference between holding the festival in or out of the hotel is not significant with only 2% differential over those that agree to pay to attend a festival. Suppliers (including restaurateurs) They liked the idea with an overall 85% (from those interviewed) support. It s a good idea but I want to be able to promote my restaurant There have already been some efforts along these lines but it need better coordination and marketing: Already the municipality had a proposal but not in the castle near the port, but they turned it down One successful festival was only promoted in Greek and with no real reach (attraction?) to AI customers. Tour operator employees (resort representatives)- Mixed responses, from my clients would like that to the majority of AI guests don t want to leave the hotel. It was something they believed they could support, though there was some concern about the logistics. In high season they identified that there needed to be something for families such as children s entertainment or a mascot there was a request - don't make it too cultural and make it (an) exclusive event not every day. Recommendation- This is the one solution that would work well, but in order for it to succeed it would need to be a frequent event during the season and would need to be moderated by an impartial organiser to minimise potential conflicts of interests. Ambassador programme The project team discussed the need for greater resort knowledge being available, which was generally well received, though who should provide it was debated. The ask me I am a local received a mixed reaction as a logo or badge. Hoteliers Many supported the idea of informing their staff of the local area and believed training their staff is important. Providing local knowledge to inform guests was believed to be a good idea and thought the badging of their staff who had been trained as good PR, a very good idea, as much as we can give to our guests. There were some who thought the rep (holiday advisor) needs training on what to 15

17 offer.it is the rep who has to give the information. There was concern about using local as many of my staff are not from here, they are from all over Customers Customers seem to expect to get such information from the tour representatives. However there was also a considerable (23%) number of customers that perceived the hotel staff as generally very helpful in providing local information. Suppliers Overall support at 45% from those interviewed. The ask me I am a local idea was generally well received by suppliers but with some reservations concerning how exactly it would be implemented and who would have the ultimate control regarding what information the local would share with the guests. At least one interviewee stressed the fact that not all employees are Cypriots and the choice of words and approach to such a solution needs careful consideration:.what do you mean ask me I am a local?...who is the local, we have Russians, we have Greeks who work for us they are not really locals can they not be part of this? If not it seems a like a racist solution to me Overall the interviewees were 45 (in favour)- 55 (not against but concerned) with this as a solution. Tour operator employees (resort representatives) Though many of their front line staff believe they know the resort well, their managers and supervisors recognised that resort familiarisation is something we used to do well, but could be improved on. The Seven St Georges Tavern was given as an example of lack of resort knowledge: we went there (Seven St Georges) for our end of season do (get together) and some said how they wish they had known about it earlier. There was a thought that a more organised orientation programme, or suppliers market at the start of the season would help. The concept of people other than resort representatives being promoted as providing local knowledge was not appreciated, as this reduces the role of the tour operator in providing service: not sure about that (ask me I am a local), that s our role, it s what we get monitored on. Recommendation- Knowledge of the local product and what the area has to offer is identified as something that needs improving. There is a need for a comprehensive education programme to promote the area and encourage guests to leave the hotel and enjoy the resort. Recognition of the importance of the resort representatives is needed in any programme. The title ask me I am a local needs reconsidering. Quality labels Exploring the concepts of quality and label, specifically on their use for developing assurances to the customers as shown in the example of St Moritz, Qualmark in New Zealand and also previous initiatives used by the CTO for the promotion of authentic tavernas, views were often interchangeable during interviews with stakeholder groups. The CTO have recently launched such a label for hotels and are hoping to soon launch a similar quality label for restaurants. As with every quality label the criteria and which body issues the label are crucial elements of the potential success of the concept. Hoteliers They believed it was something that was needed and this is something that could work. One of their main concerns was to ensure quality for their guests. It was identified that the star rating in Greece was a good idea that helped customers. There was a request that the CTO should start closing (restaurants) with poor quality before implementing a gold and silver sticker Some thought that the CTO are the only ones that can do this whilst others believed the tour operators are the ones who know which are the best restaurants and want to protect their customers. Some recognised the difficulty in determining criteria It is difficult to define what is quality, are we talking local products and local employees, who has local wines, but it needs to be sustainable, definable. 16